Software Technology Park Of India

Software Technology Park Of India

Anybody or entity that wants to start a technology park for companies would have to go for STPI Registration. STPI is an abbreviation for software technology parks of India. This registration is crucial to carry out the license for technology parks in India. It is crucial to consider third-party advice for establishing this form of registration. Hence third-party consultants must be utilized to make the whole process of registration seamless.

Package inclusions:
  • Process of Registering for Software Technology Parks of India
  • STPI Licensing Requirements
  • End to End Advice
  • Business Plan Preparation
  • Liaising with Software Technology Parks of India authorities for registration process
Software Technology Park Of India

STPI Registration - An Overview

The Software Technology Parks of India is established as an independent and autonomous body. This society is under the authority of the Ministry of Electronics and Information Technology (MeitY). Such society was formed by the government of India to increase the amount of domestic software production within the country and export from the country.STPI headquarters is in Delhi and has its presence in more than 59 locations across India.

Objectives of Software Technology Parks in India (STPI Registration)

The following are the objectives of the Software technology parks in India:

Objectives of Software Technology Parks in India
  • Export and Promotion

The Software Technology Parks of India was set up with the main objective of promoting the development of software products within the country. Apart from this, export incentives for technology and R&D are one of the main aims of STPI Registration.

  • Contributing to MSME

India vastly comprises of micro, small and medium enterprises. In order to promote the development of software in these sectors, the government has come out with different schemes under the system of STPI in India.

  • Improve the Amount of Data Communication Services

Increasing the amount of communication services can be provided to different industries through this society.

  • Increase the quality of software and improve the requirements of consumers

Through such programs offered by the society, improvement in terms of quality can be achieved. This will directly affect consumer satisfaction needs in the society.

Benefits of Registering under the Software Technology Parks of India

The following benefits are availed by considering the SPTI registration:

Benefits of Registering under the STPI
  • No Import Duty or Customs

Under this scheme there is no import duty on products which are imported in the country. Such products are exempted from paying any form of import duty in India. To some extent there is exemption from specific customs.

  • No Form of Central Excise for Procurement of Goods

Any unit which is registered under the system of Software Technology Parks of India would be exempted from excise. This would be applicable to the system of excise duty on software products.

  • Import of Foreign Equipment

Through such schemes there will be arrangement for special import of equipment. Such equipment can be imported through the system of hire purchase and lease.

  • Foreign Direct Investment

Under this scheme, the unit can secure 100% foreign direct investment through the automatic route. For development of software services, any foreign direct investment would be classified under the automatic route and not require any prior approval from the government.

  • Income Tax Relief

Under the Income Tax Act, 1961 such units can avail income tax holiday and other forms of benefits of government schemes.

  • Green Card

Any STP under the Software Technology Parks of India can secure benefits from the government. Any STP registered unit, having green card can avail quick processing and other features through such schemes.

Eligibility Criteria for STP Registration (Software Technology Parks of India)

The following eligibility criteria are required for STP registration under the Software technology Parks of India:

Eligibility Criteria for STP Registration

Any Entity

First and foremost the applicant has to satisfy the requirement of the specific entity for STPI registration process. Only the following entities can make an application to establish a STPI in India:

  • A Company which is established in India
  • A foreign company that wants to start its operations in India
  • A branch office of a foreign company in India. Such branch office must be established as per the provisions of establishment of branch office under the RBI Act.

Proposal Type

To be eligible for registering an STP unit in India, the applicant would have to indicate the proposal type for the STP unit. The following units can be considered for establishing a STP (Software Technology Parks of India):

  • Establishing a new STP unit (Software Technology Park Unit)
  • Renewing the Certificate of Registration for the STP unit.
  • Conversion from any other unit to a STP unit.
  • Conversion from a DTA to a STP unit.

Provide Undertaking

At the end of the application, the applicant has to provide an undertaking for the same for registering the unit in India. Such undertaking must be true and correct for the purpose of exporting software based technology from India.

Procedure for Establishing a STPI (STP Unit) under Software Technology Parks of India

Such application must be for the export of software technology and software products from India. The following procedure has to be considered for an application when making an application for registering an STP unit in India:

Procedure for Establishing a STPI
  • Go Online to the Website

In the first step, to establish a STP unit the applicant has to proceed to the following website https://www.stpi.in/ . After this the applicant has to go to the login tab.

  • Register on the Portal to Fill the Application

The applicant has to register his email address and create a password for the portal. Through this step, the applicant will provide all information to the Software Technology Parks of India website. The applicant in the login application should go and click on the tab ‘I want to register as New Unit’. After this the applicant must provide the information for registration. Once this is added then the applicant will receive a username along with the password. This information must be inputted in the login page and a captcha code will be generated. After this step, the applicant has to click on login.

  • Applicant can also download the application

The application can also downloaded online. This can be downloaded from http://www.mah.stpi.in/formats_body.html.

  • Fill in the information requested

The applicant for STPI Registration under Software Technology Parks of India has to provide all the information which is mandatory for carrying out the process of registration. The following information has to be provided by the applicant to carry the process of registration:

  • Location, Name, Address and Activities which are carried out by the entity or the undertaking.
  • IEC (Import Export Code) Number, PAN Number, GSTIN Number, Income Tax Number, Bank Details (Such as Account Number and IFSC code).
  • The application also has to indicate if the applicant has another registered STP. Apart from this, information on promoters must be provided if they are under taking the registration of another STP.
  • Type of Undertaking also has to be provided- This will indicate if the undertaking is a private limited company, public limited company or another type of entity.
  • Brief Background on the activities carried out by the applicant also has to be provided.
  • Type of Projects Carried out, Information on the Capital Expenditure Undertaken by the company, Projected Exports for a period of 5 years, Value or the requirement of capital goods also has to be provided by the applicant.
  • Information related to any form of partnership or collaborations (foreign) entered into by the applicants must be provided.
  • If there is any form of respective technology agreements entered between the applicant and the foreign collaborator, then information on the same must be provided.
  • Performance in terms of Exports of Products must also be indicated in the application
  • Areas of Software development also has to be provided to the applicant. This will include if the applicant is focussing on IT or R and D or ITES or some form of new machine learning programming. All the above requirements have to be satisfied by the applicant for opening a SPT unit under Software Technology Parks of India.
  • Provide the Undertaking for Export of Software

In the next step, the applicant has to provide an undertaking for export of software. Such undertaking provided by the applicant must indicate that all the information provided abides to the requirements of the Ministry of Electronics and Technology.

Submit the Application to the Authority

In the final step, the application must be submitted by the applicant to the Director, Software Technology Parks of India, Pune for STP unit registration process. The application must be signed by the authority with company seal and other information. All pages of the application must contain the office seal of the company.

  • The fees must be paid by the applicant. A fee of Rs. 2,950.00/- (Rs. 2500.00 + Taxes) must be paid by mode of NEFT/ RTGS. This fee would only include the charges related to processing the application for STPI registration under Software Technology Parks of India. Such application and processing fees will include GST.
  • When submitting the application, the applicant must mandatory provide the undertaking along with the application.

Reporting Compliances which have to be carried out by STP units

For complying with the requirements of Software Technology Parks in India, the following reporting compliances have to be followed properly:

  • Monthly Reports- Progress of the completion must be submitted by the 7th of every month after completion of the previous month.
  • Quarterly Reports- Units are also required to submit quarterly reports to comply with the requirements of STPI units.
  • Performance Reports-  Performance reports and progress of the STPI also have to be submitted as per the requirements.
  • Accounts- Bank accounts have to be held separately. This would be for a unit that has international activities and domestic activities. Though the principle of separate legal entity prevails, still there has to be some form of process related to separation of units.
  • Foreign Exchange Compliance- Annual Compliance related to foreign exchange also must be provided by the applicant.

Documents for Software Technology Park Unit (STPI)

The following documents have to be providing for STP unit under Software technology parks of India:

  • Application form
  • Certificate of Incorporation in case of the Company
  • Articles of Association and Memorandum of Association (AOA and MOA)
  • Monthly Reports, Quarterly Reports and Annual Performance Reports
  • Workings related to profit and loss accounts
  • Audited Financial Statements
  • Man Power Plans
  • Future Plans of the Business
  • Details of the Foreign Collaborator
  • Invoice Copy related to Internet Service Provider
  • Copy of the Rent Agreement
  • SOFTEX Form
  • Master Service Agreements (MSA) and other Forms of Services Agreement
  • Information pertaining to the number of employees and the wage bill
  • Balance Sheet
  • Information on the Time Frame
  • Fund Flow Statement
  • Any other Document which is prescribed under the application Form

How to reach Enterslice for  STP Registration (Software Technology Parks of India)

  • Fill up the online form.
  • One of our professionals will get back to you.
  • All queries can be addressed to one of our experienced professionals.
  • Track and monitor the progress of your application.
  • Secure Deliverables.

How Enterslice will help you

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Frequently Asked Questions

An STP is an abbreviation for Software Technology Park. Such units are established under the main authority the Software Technology Parks of India. This unit which is established is mainly a 100% export oriented unit. Such services for export include the development and export of software products from the country.

There are many advantages of setting up or registering under the Software Technology parks of India:

  • Setting up under this scheme forms a major attraction.
  • More amount of exemptions are available for units set up under STP.

The crucial areas where the applicant has to provide detailed information in the application include the following:

  • Information on the business
  • Types of Software’s Involved
  • Areas of Expertise
  • Project Expenses.

Yes the details of the project along with projected finances and other information must be submitted to the software technology parks of India.

The following types of foreign investments are allowed :

  • Foreign Direct Investment under the Automatic Route- Under this route 100% foreign investment is allowed
  • Foreign Investment which is considered on a repatriable basis
  • Foreign Investment which is considered on a non-repatriable basis

Depending on the government timeframes the STPI registration occurs.

Any warehouse which is declared under the STPI scheme for exports is termed as bonded warehouse.

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